The MPS market has entered a period of rapid transformation, as this year’s MPS Insights Report demonstrates. With Consumer Duty raising expectations, the FCA sharpening its focus, and more than 200 providers competing for visibility, the pressure on differentiation has never been greater. Yet this evolving environment also presents fresh opportunities. In Part 1 of our special two-part feature for our 2025 MPS Insights publication, leading asset managers share their views on the regulatory landscape, operational challenges, adviser partnerships and the innovation required to stand out in an increasingly crowded market.
Operational efficiency and strong adviser partnerships are essential – Brooks Macdonald
Mark Shields, co-manager of the Managed Portfolio Service and Multi-Asset Fund range at Brooks Macdonald, comments:
“One of the biggest challenges is navigating a crowded, cost-sensitive market under increasing regulatory pressure. Consumer Duty has raised expectations for evidencing value, and the FCA’s multi-firm review will intensify scrutiny on governance and operational resilience. At the same time, fee compression and platform complexity make it harder to deliver differentiated propositions without eroding margins.
“The greatest opportunity lies in driving operational efficiency and strengthening adviser partnerships. Providers that streamline processes can reduce costs and improve accuracy, freeing up resources for client service. Alongside this, advisers are under pressure to demonstrate value and meet compliance obligations. MPS firms that offer clear value narratives, robust investment approach and consistent outcomes can become indispensable partners, deepening relationships and capturing flows from firms seeking simplicity and support.”
Differentiation requires innovation, not just performance – Aberdeen Adviser
Mark Hopcroft, Head of Investment Solutions at Aberdeen Adviser, says:
“The main challenge for MPS providers over the next 12-18 months is navigating an increasingly saturated market while maintaining relevance and profitability. With over 200 providers competing for adviser attention, the pressure to differentiate is intensifying. The traditional battlegrounds of price, performance and proposition are no longer enough. Providers must now focus on innovation that genuinely supports advisers, particularly in enhancing client understanding, engagement and experience.
“The opportunity I’d highlight lies in evolving the provider-adviser relationship from transactional to collaborative. As advisers seek to streamline operations and focus on planning, MPS providers can add value by offering integrated solution that align with the adviser’s brand and philosophy. This means going beyond investment performance to deliver tools, insights and services that help advisers articulate value, demonstrate impact, and build trust with clients.
“Ultimately, success will come to providers who help advisers build better businesses – those that help to improve client outcomes and deliver exceptional experiences. In a landscape shaped by technology, regulation and shifting client expectations, the ability to simplify complexity and deliver clarity will be the true differentiator.”
Consistency through uncertainty is a winning strategy – Schroder Investment Solutions
Ryan Paterson, Portfolio Manager at Schroder Investment Solutions, comments:
“Over the next 12–18 months, the key challenge for MPS providers will be navigating continued market uncertainty while maintaining consistency of outcomes for clients.
“With shifting interest rate expectations, inflationary pressures and ongoing geopolitical developments, ensuring portfolios remain resilient, well-balanced and aligned to investors’ long-term objectives will be essential.
“At the same time, we see a significant opportunity for providers to strengthen relationships with advisers and clients by demonstrating clear value and enhancing engagement. As the demand for advice-led, outcome-focused solutions continues to grow, MPS providers who combine strong investment expertise with a deep understanding of client needs will be best placed to succeed. Leveraging investment expertise and insight to deliver greater efficiency, transparency and personalisation will further help differentiate leading propositions.
“At Schroder Investment Solutions, our focus remains on helping advisers deliver the best possible outcomes for their clients through globally diversified, risk-managed portfolios designed to deliver robust, long-term returns across market cycles.”
Service and partnership define MPS success – Tatton Investment Management
The Tatton team said: “You only need to skim a google search on MPS to see its now well established in the IFA sector; the total AUM, the numbers of firms using MPS, a more settled fee level (all around Tatton’s 13 year old 0.15%) and the beginnings of established and boutique providers.
“And, with significantly more assets under management, the MPS managers themselves are becoming more influential with underlying fund managers. We are the gatekeepers to IFAs’ clients’ portfolios and this is good news for advisers: we are able to negotiate institutional rebates on funds, seed new strategies and, with deeper research teams, source fund managers from around the globe – a real benefit to client outcomes.
“However, the key to the future of any MPS manager, is meeting the needs of the IFA and their clients. It is our firm belief that the IFA sector will continue to prosper and, if MPS managers get their service levels right, so will they.
“And that is the key, service. Service to Tatton is living the stewardship of client portfolios and taking responsibility, as investment managers, for their day-to-day oversight. One simple example; monitoring portfolios across all platforms, all the time. Seems a basic function, but ask an MPS manager if they monitor their portfolios on platforms to ensure they are invested correctly, and the answer you get might be surprising. To us, it’s a basic duty.
“The benefits of outsourcing investment management are now well understood. As the market matures, the MPS managers that are set up to champion and protect the IFA, that treat them as business partners, not introducers, are the firms that will thrive.”
Regulatory focus can reinforce professionalism and value – Marlborough
Danny Knight, Commercial Director-Intermediaries, says:
“The MPS market has seen strong growth in recent years, driven by adviser demand for scalable and transparent investment solutions and a greater regulatory focus on suitability and value. We expect this growth to continue, underpinned by an increasing focus on differentiation. More than ever, advisers are looking for a rigorous and consistent investment process, flexibility across platforms and outstanding service.
“The upcoming FCA review into MPS should be viewed as a positive and timely development. It provides an opportunity for the industry to showcase the professionalism, high standards of governance and value that MPS propositions deliver for advisers and their clients. Greater regulatory scrutiny will help to reinforce the position of well-managed services.
“Looking ahead, we believe the most successful MPS services will be those that combine scale with substance – delivering consistent outcomes, robust governance and clear evidence of value in an increasingly competitive market.”
A bright future for MPS within adviser businesses
Looking ahead, the outlook for MPS is not just positive, from what these leading asset managers are telling us, it’s full of promise for advisers who embrace its potential. The insights shared by providers in this feature show that MPS can help advisers deliver consistent investment outcomes, simplify complex processes, and strengthen client relationships. With innovation, technology, and regulatory clarity supporting their day-to-day work, it means that advisers can focus on what really matters, adding value, building trust, and helping clients achieve their financial goals.
By choosing the right MPS partners, advisers can use today’s competitive and evolving market to their advantage, creating more resilient, future-ready practices, turning challenges into opportunities and making a real difference for the lives of the clients they serve. Thinking back to the late Stephen R. Covey’s ground-breaking and powerful work ‘The 7 habits of highly effective people’ to us that all sounds like ‘win-win’!
This feature was part of our MPS Insights 2025 publication – designed with advisers’ needs in mind. You can download your copy of the publication here…. https://wealthdfm.com/2025-26-managed-portfolio-services-mps-insights/
Check back in with us again soon for Part 2 of our experts MPS outlook
